Cholamandalam Investment and Finance - Total Income up by 14% ~ Estate, Market, Fund, Insurance, Loan

Cholamandalam Investment and Finance Company Limited

Total Income up by 14%, PAT up by 6%

Q 2 - Performance Highlights:

The Company disbursed Rs.2189 Cr. in Vehicle Finance as against Rs. 2138 Cr. in Q 2 of 2013-14 and disbursed Rs.717 Cr. in Home Equity loans as against Rs. 675 Cr. in Q 2 of 2013-14. Disbursements from new businesses were Rs. 123 Cr. The aggregate disbursements of the Company for the quarter are Rs.3028 Cr. as against Rs. 2827 Cr. in Q 2 of 2013-14.

Total Income is Rs.919 Cr. compared to Rs.809 Cr. in Q 2 of 2013-14 registering a growth of 14%.

With continuing stress witnessed in the Commercial vehicles segment, the Company’s overall GNPA is at 2.6% and the NNPA is at 1.4% as on 30^th September 2014. The company continues to follow a stringent credit selection approach which is reflected in the disbursement growth being relatively lower at 2% as compared to the previous year in the vehicle finance business.

Profit before tax is Rs.144 Cr. as against Rs.135 Cr. in Q 2 of 2013-14 registering a growth of 7%.

Profit after tax is Rs.95 Cr. as against Rs. 90 Cr. in Q 1 of 2013-14 registering a growth of 6%.

Financial Performance – Summary

The Company has expanded its presence in 2 additional locations taking the total number of branches to 579 as on 30^th September 2014.

On September 03, 2014, the company allotted 50,000,000 1% Compulsorily Convertible Preference Shares ("CCPS") of ₹ 100 each per share aggregating to ₹ 500 Crores to Dynasty Acquisition (FDI) Ltd., on preferential basis. The CCPS shall be converted into 12,285,012 equity shares of ₹ 10 each at a conversion price of ₹ 407 per share (including premium of ₹ 397 per share) at the expiry of 12 months from the date of allotment or earlier at the discretion of the Board. There is no dilution in Earnings per share for the three months and six months ended September 30, 2014 on account of issue of CCPS.

The Company raised Tier II capital of Rs.42 Cr. by way of perpetual debt instruments to strengthen its capital adequacy ratio.

The capital adequacy ratio (CAR) of the company was at 19.78% as against the regulatory requirement of 15%.

Subsidiaries Performance:

The subsidiaries Cholamandalam Securities Limited and Cholamandalam Distribution Services Limited had together made a profit of Rs. 3.93 Cr. as against Rs. 0.87 Cr. in Q2 of 2013-14.

Consolidated Results:

The consolidated profit after tax is Rs. 99 Cr. as against Rs. 91 Cr. in Q2 of 2013-14 registering a growth of 9%.

For media Contact

Amit Mishra

M: 9344075741